Answer:
The unlevered beta is 1.03
Explanation:
The formula for unlevered beta is given below:
Unlevered Beta (βA) = Equity Beta (βE)
/1 + (1 − t) × D/E
equity beta is 1.40
t is the tax rate at 35% or 0.35
D is the debt value given as 36% or 0.36
E is the equity value given as 64% or 0.64
Unlevered Beta (βA=1.40/(1+(1-0.35)*0.36/0.64
Unlevered Beta (βA)=1.40/1+(0.65)*0.36/0.64
Unlevered Beta (βA)=1.40/1+(0.65)*0.5625
Unlevered Beta (βA)=1.40/1+0.365625
Unlevered Beta (βA)=1.40/1.365625
=1.025171625 approx. 1.03
An installment payment is equal payments every month, meaning it is the correct answer. (B)
Answer: See explanation
Explanation:
Based on the information given in the question, we should note that while using the gross method, the revenue gotten from sales will be calculated by subtracting the rebate of 2% from the full invoice amount of $110,000. This will be:
= $110,000 - (2% × $110,000)
= $110,000 - (0.02 × $110,000)
= $110,000 - $2200
= $107800
Using the net method, the revenue gotten from sales will be calculated by subtracting the rebate of 6% from the full invoice amount of $110,000. This will be:
= $110,000 - (6% × $110,000)
= $110,000 - (0.06 × $110,000)
= $110,000 - $6600
= $103400
Option C
Sears, Roebuck and Company was a pioneer in: selling goods by mail
<u>Explanation:</u>
The endurance of Sears has traversed and incorporated the emergence of contemporary American purchaser habits. Sears berthed the platform for today’s omnipresent online marketplace by their fabulous inventory and the colossal mail-order deals it performed for above a centenary.
Mail-order firms like Sears held capable to enter underserved pastoral regions by pitching on modish foundations, such as the tracks that connected far-flung sections of the nation. It taught millions of purchasers regarding mail-order systems, such as transportation, payment methods, exchanges, and replacements.
Answer:
6.88%
Explanation:
Weighted Average Cost of Capital (WACC) = [After Tax Cost of Debt * Weight of Debt] + [Cost of equity * Weight of Equity]
WACC = [3.40%*0.39] + [10.80%*0.69)
WACC = [0.034*0.39] + [0.108*0.69)
WACC = 0.01326 + 0.07452
WACC = 0.08778
WACC = 8.78%
The required return for the new project = Weighted Average Cost of Capital – Risk Adjustment Factor
The required return for the new project = 8.78% - 1.90%
The required return for the new project = 6.88%
